Latest Ukraine Renewable Energy Newsletter (#25) published

The latest issue of Ukraine Renewable Energy Newsletter was published. You can download full version here. Please see below introduction and the list of content.

IMEPOWER View

There has been finally a progress related to approval by the Government and the Regulator of the secondary legislation needed for practical implementation of the local content requirement. NERC’s Procedure for calculation of the local content was registered by the Ministry of Justice and came in force in October, while the Cabinet of Ministers confirmed in September that certificates of origin should be issued by the Chamber of Commerce of Ukraine and its regional branches and that expert organizations accredited with the Ministry of Regional Development and Construction will play a key role in confirming the local share in the value of renewable projects.

Despite this positive development, there is still no clarity regarding pending amendments to the Electricity Law related to the green tariff support system. While the Draft Law 10183 approved by the Parliament in July 2012 was positively accepted by the industry participants, there have been a number of changes proposed by MPs for the second reading that can have important impact on the sector, in particular, with regard to the local content requirement. As we understand, this Draft Law will be reviewed by the Parliament in the second reading at the beginning of November and sincerely hope that after that legal and regulatory framework related to the green tariff will stabilize and allow developers and suppliers of equipment to plan normally their operations for next several years.

Opening of the wind turbine assembly facility in Kramatorsk by Fuhrlander Wind Technology is a positive development in the direction of establishing local production of the elements that can be used in renewable projects, while this news was clouded by insolvency application filed by Fuhrlander AG in Germany several days after. In the absence of official comments from Fuhrlander, it is currently difficult to expect that wind turbines produced in Kramatorsk will be recognized bankable by international financial institutions in the absence of proper guarantees from German mother company.

In This Issue

I. Legal and Regulatory Developments

1.1. Cabinet of Ministers approved the Resolution on issuance of the certificates of origin

1.2. Ministry of Justice registered the NERC’s local content calculation procedure

1.3. NERC approved the green tariffs for renewable energy producers for November 2012

1.4. NERC approved the first green tariff with account of the local content share

II. Investment News

2.1. EBRD finances its first solar power project

2.2. EBRD considers providing a loan to Novoazovsky Wind Park

2.3. DTEK commissioned the country’s largest wind power plant

2.4. Ukrainian Fuhrlander Wind Technology plans to produce 20 wind turbines in 2012

2.5. Activ Solar completed the first stage of Dunayska solar power plant

2.6. 1.3 MW solar power plant was constructed in Kirovograd oblast

2.7. Avangard and Polish PGNiG agreed to cooperate in the renewable energy field

2.8. WOG intends to buy equipment for roof solar power plants

2.9. Vitroenergoprom will get USD 12.3 million loan from Megabank

2.10. The first stage of the biomass combined heat and power plant to be commissioned in Kyiv oblast

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